ECONOMISTS’ VIEWS: HOW LIKELY IS A RISE IN INTEREST RATES THIS WEEK?
SCOTT CORFE | CEBR
“Our central view is that the MPC will wait until April or May – when economic growth in Q1 2011 and the contents of the March Budget are known – before raising rates. The downward revision of GDP for the fourth quarter of 2010 strengthens the case for the MPC to “wait and see”.”
PHILIP SHAW | INVESTEC
“Although the idea of a hike appears to be gaining ground on the MPC, the majority of members still appear to be unconvinced. A significant data event or a new Inflation Report forecast will probably be necessary to trigger a member to change his vote to a hike.”
SIMON WARD | HENDERSON GLOBAL INVESTORS
“The question for the waverers this month is “why wait?” February’s Inflation Report clearly signals the need for a rise, with the mean forecast for inflation two years’ out based on unchanged policies the furthest above the target since 1998.”